Monday, March 27, 2006

BVI Inland Revenue Department on tax laws changes

Last week BVI Inland Revenue Department hosted press briefing to raise awareness of the recent changes to some of the BVI tax laws.

Acting Commissioner of Inland Revenue Ms. Sylvia Moses said the recent changes to some of the Territory’s tax laws were necessary to meet the demands of the international community arising mostly from the fact that income tax in the BVI was zero rated in the end of 2004.

Main statements of Acting Commissioner of BVI IRD:

  • Fully automating tax operations of Inland Revenue Department is in the process.
  • Increased taxes will allow the BVI government to improve such social services as education and health care as well as the Territory’s infrastructure.
  • In 2005 the payroll tax was implemented. 8% should be paid by the employer and 8% should be paid by the employee. One amendment addresses the issue of those who have more than one employer. The total remuneration paid to an individual by employer/employers in a year maximum is covered by tax exemption of $7,500 covers. Accordingly, no matter how many jobs the individual has, payroll tax is due on all remuneration above $7,500.
  • Transfer on sale of property for non-belongers, under the Non-belonger Land Holding Regulation Act was increased from 8% to 12% of the price or the market value.

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